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DHA and DHCA Authorized to Impose Fines: What this means for Dubai and for you
Posted on Mar 30, 2016 by Travis Jones
With the final phase of 2013's Dubai Health Authority insurance reform approaching, the Dubai government has finally released information concerning possible fines and fees that will be charged for non-compliance. Not only does this effect individuals, but also insurance companies and other corporations too. Find out more here.
The Dubai Health Authority reform has been evolving for years now. Ever since its inception in November 2013 the reform has been put in place to ensure that every person in Dubai, even those that are just visiting for a brief time, have their own private medical insurance in place in order to prevent losses in the Emirate’s public healthcare system due to patients’ inability to pay for treatment. One of pieces that has been missing from DHA reform puzzle, though, is what exactly the penalties will be for those that choose not to comply with it by purchasing health insurance for themselves, their families or their employees. Here we delve into what the newly announced penalties are and what they mean for you and Dubai as a whole.
The DHA reform
As a quick refresher, the DHA reform has been unfolding over several phases. The 1st phase occurred in October 2014 (nearly a year following the announcement of the reform), and only required that large companies with employees numbering 1,000 or greater provide medical insurance for them. The 2nd phase, rolled out in at the end of July 2015, required that medium sized companies with 100 or more employees do the same. That leaves the 3rd and final phase of the reform, which has yet to come into force.
Even so, on June 30th, 2016 even the smallest of companies, as well as private citizens, their dependents, and any private employees, such as foreign domestic helpers, will be required to obtain private medical insurance. Furthermore, following this date all those seeking entry into Dubai will be required to show proof of health insurance or their entry will likely be denied. If any person in Dubai refuses to obtain private health insurance for themselves or the people that they are responsible for they will be subject to penalties, which, up to this point, had not been detailed to the public. Now, however, we know what these penalties shall be.
Penalties for non-compliance
At the end of March 2016, Dubai Crown Prince and Chariman of Dubai Executive Council Shaikh Hamdan bin Mohammed bin Rashid Al Maktoum announced a new resolution the spelled out with more detail the penalties related to health insurance in Dubai. Under Executive Council Resolution No (7) of 2016 both the DHA and the Dubai Healthcare City Authority are now authorized to collect related fees and fines within their jurisdictions.
While the full text of the resolution has not yet been released to the public, it does provide details as far as maximum fines. While the Resolution also details penalties for insurance companies themselves, it mentions that multiple offenders could be subject to fines as high as Dh 500,000, although fines for the failure to obtain health insurance are likely to be substantially less. UAE Medical Insurance will be sure to provide updates on any further clarification on specific fines for individuals and companies.
What this means for Dubai and for you
Obviously, the biggest message that can be inferred from this announcement is that it is imperative for individuals and corporate leaders to obtain medical insurance for themselves, their employees, and their families, as the possible fines are likely much higher than most individuals would care to pay. This is especially true because most people are going to want to have health insurance plans for their family anyway. Also on an individual front, it is going to be important to obtain health insurance for domestic workers as well.
Lastly, it’s important to note that, while many of the health insurance plans with the best prices available in Dubai, these plans often only cover the bare minimum coverage required by the DHA, which will oftentimes not meet the level of coverage that you would personally like to have from your private medical insurance plan. For this reason, it’s generally a good idea to work with insurance professionals that can find plans with coverage that meets your specific needs. The knowledgeable agents at UAE Medical Insurance can take your details to find and compare bespoke insurance plans from a range of insurance companies. Not only this, they can also answer any questions you have and provide you with free price quotes.Contact them today to find the Dubai health insurance plan that is best for you.